Quick answer
MCA funder merchant credit score distribution in 2026 typically: 700+ FICO 22-30%, 650-699 25-32%, 600-649 20-26%, 550-599 12-18%, below 550 5-10%. Average funded FICO 645-670 (up from 615-640 in 2023). Top-tier funders (Credibly, OnDeck, Kapitus) skew higher (mean 685-700); sub-tier funders accept down to 500. Factor rate strongly correlates with credit tier — 700+ FICO 1.18-1.28, sub-550 1.40-1.55.
Full answer
Credit score distribution overview 2026. MCA funder merchant credit score distribution reflects funder underwriting box, marketing positioning, and target paper grade. Industry has shifted to higher-quality credit profiles over 2023-2026 — average funded FICO 645-670 vs 615-640 in 2023. Distribution shape varies significantly by funder tier and product positioning.
Industry-wide credit score distribution 2026. (a) 750+ FICO share 8-12% of funded portfolio. (b) 700-749 share 14-20%. (c) 650-699 share 25-32% (largest single segment). (d) 600-649 share 20-26%. (e) 550-599 share 12-18%. (f) 500-549 share 5-10%. (g) Below 500 share 1-3%. (h) Total funded average FICO 645-670 in 2026.
Top-tier funder distribution 2026 (Credibly, OnDeck, Kapitus). (a) 700+ FICO share 35-45%. (b) 650-699 share 30-38%. (c) 600-649 share 15-22%. (d) Below 600 share 5-12%. (e) Mean FICO 685-700. (f) Underwriting box minimum typically 600-625 FICO. (g) Selective underwriting drives portfolio quality.
Mid-tier funder distribution 2026 (Greenbox, Forward Financing). (a) 700+ FICO share 18-25%. (b) 650-699 share 25-32%. (c) 600-649 share 22-28%. (d) 550-599 share 15-20%. (e) Below 550 share 8-13%. (f) Mean FICO 630-655. (g) Broader underwriting box accepts 500-525 FICO.
Sub-tier funder distribution 2026. (a) 700+ FICO share 8-15%. (b) 650-699 share 18-25%. (c) 600-649 share 25-30%. (d) 550-599 share 20-28%. (e) Below 550 share 12-22%. (f) Mean FICO 590-615. (g) Specialty in lower-tier paper — higher factor rates offset higher default risk.
Specialty funder distribution 2026 (industry-specific or sub-prime). (a) Bad-credit MCA specialists — mean FICO 540-590. (b) Industry-specific funders vary widely. (c) Healthcare-focused funders skew higher (mean 670-695). (d) Trucking-focused funders skew lower (mean 600-630). (e) Restaurant-focused funders mid-range (mean 625-655). (f) Vertical specialization enables tighter underwriting.
Factor rate correlation with credit tier 2026. (a) 750+ FICO factor 1.15-1.25 (best pricing). (b) 700-749 FICO factor 1.18-1.28. (c) 650-699 FICO factor 1.22-1.35. (d) 600-649 FICO factor 1.28-1.42. (e) 550-599 FICO factor 1.35-1.50. (f) 500-549 FICO factor 1.40-1.55. (g) Below 500 FICO factor 1.45-1.65 (sub-prime specialty only). (h) APR-equivalent ranges 25-90%+.
Default rate by credit tier 2026. (a) 750+ FICO 90-day default 3-6%. (b) 700-749 FICO default 5-9%. (c) 650-699 FICO default 8-13%. (d) 600-649 FICO default 12-17%. (e) 550-599 FICO default 17-24%. (f) 500-549 FICO default 22-32%. (g) Below 500 FICO default 30-42%. (h) Default-credit correlation drives risk-based pricing.
Renewal rate by credit tier 2026. (a) 750+ FICO 75-85% renewal rate. (b) 700-749 FICO 65-78% renewal. (c) 650-699 FICO 55-70% renewal. (d) 600-649 FICO 45-58% renewal. (e) 550-599 FICO 35-48% renewal. (f) 500-549 FICO 25-38% renewal. (g) Below 500 FICO 18-30% renewal. (h) Renewal-credit correlation drives LTV.
Credit score trends 2023-2026. (a) Industry mean FICO shifted from 615-640 to 645-670. (b) Driven by underwriting tightening. (c) Cost of capital pressure. (d) Securitization access requirements. (e) ML-driven underwriting improvements. (f) Industry data sharing. (g) State disclosure laws creating compliance pressure on quality.
Geographic credit score variation 2026. (a) Northeast metros mean FICO 660-685. (b) West Coast metros mean FICO 655-680. (c) Southeast metros mean FICO 635-660. (d) Texas/Southwest mean FICO 640-665. (e) Midwest mean FICO 645-670. (f) Tier-1 metros average 15-25 points higher than tier-3 markets. (g) Geographic factor in underwriting models.
Industry vertical credit variation 2026. (a) Healthcare services mean FICO 670-695 (highest). (b) Professional services mean FICO 660-685. (c) Auto repair mean FICO 640-665. (d) Restaurants mean FICO 625-650. (e) Trucking mean FICO 615-640. (f) Construction mean FICO 620-645. (g) Retail mean FICO 630-655. (h) Industry-credit variation drives vertical underwriting models.
Bottom line. MCA funder merchant credit score distribution in 2026: 750+ FICO 8-12%, 700-749 14-20%, 650-699 25-32% (largest segment), 600-649 20-26%, 550-599 12-18%, 500-549 5-10%, below 500 1-3%. Average funded FICO 645-670 (up from 615-640 in 2023). Top-tier funders (Credibly, OnDeck, Kapitus) skew higher: 700+ share 35-45%, mean 685-700, minimum box 600-625. Mid-tier (Greenbox, Forward Financing) mean 630-655, minimum 500-525. Sub-tier mean 590-615. Specialty bad-credit MCA specialists mean 540-590. Factor rate strongly correlates: 750+ FICO 1.15-1.25, 650-699 1.22-1.35, 550-599 1.35-1.50, sub-500 1.45-1.65. Default rate correlates: 750+ 3-6%, 650-699 8-13%, 550-599 17-24%, sub-500 30-42%. Renewal rate correlates: 750+ 75-85%, 650-699 55-70%, 550-599 35-48%. Industry-wide FICO shifted up 30 points 2023-2026 driven by underwriting tightening, cost of capital pressure, securitization requirements, ML underwriting, data sharing (DataMerch, Cortera), state disclosure laws. Geographic variation: Northeast/West Coast metros mean 655-685, Southeast/Texas 635-665. Industry vertical variation: healthcare 670-695, professional services 660-685, restaurants 625-650, trucking 615-640. Industry-credit variation drives vertical underwriting models.
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Methodology. Fundnode is an independent funding-platform that scores merchants against our 100-funder database. We earn referral fees from funders when merchants apply via Fundnode. Editorial rankings and answers are independent of fee structure. Updated 2026-06-25.